Amazon AMZN Fails at Overhead Wall of Resistance
Thu, Aug 17, 12:21 PM ET, by Corey Rosenbloom
I featured Amazon (AMZN) as a bearish swing trading candidate in last night’s member report and this morning we’re seeing initial follow-through in the bearish direction as shares failed at a wall of clear overhead resistance.
Let’s see what’s happened and what to watch now:
In our “Swing Trader’s Zone” of the Idealized Trades Report last night, I highlighted the overhead “Cradle” Resistance from the falling 20 and 50 day EMAs overlapping the $990 per share level.
In the event shares traded “Down Away From” this level – as appears to be the case – the target was the prior low near $950 per share for a quick swing trade (or series of profitable, bearish intraday trades on the pathway lower).
Amazon’s sell-swing today plays into the broader market weakness and is giving profits to those aggressive traders willing to step-up and sell into the resistance pivot.
Continue following this proposed bearish pathway toward the prior low – a critical support pivot – and be on guard for any surprise bullish reversals as price travels the bearish short-term path lower.
For alternate thesis planning, Amazon (AMZN) becomes a breakout bull candidate above $1,000’s critical price and EMA resistance.
Stay tuned! And join us in the membership to take advantage of our expanding Swing Trading focus mixed with our intraday strategies and tactics.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Resistance" Definition
SDI Glossary: "Stock" Definition
SDI Glossary: "Swing Trading" Definition
SDI Glossary: "Trend" Definition
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